Wednesday, November 18, 2009

That's nothing new

The following article is from the Chicago Tribune:

http://www.chicagotribune.com/news/chi-aldermen-payroll19nov19,0,280697.story?page=1

For those of you unfamiliar with the history of Chicago’s hiring practices here is a brief summary:
In 1969 a lawsuit was filed against the Democratic Party of Cook County alleging that government hiring was unduly influenced by political operatives. A 1979 ruling led to a court order in 1983 that made it unlawful to take any political factor into account in hiring public employees. Those decisions along with companion consent judgments—collectively called the Shakman decrees—are binding on more than 40 city and statewide offices. Circumventing these decrees has become a routine way of life for politicians and government employees.

What we have learned from the Tribune article is that the City of Chicago has a payroll account that is used by City Alderman to hire friends and family. This payroll account is not listed in the City budget and until now was not know about by those who oversee the Shakman decrees.

Here are some of the highlights from the Tribune article:

  • "All of us (aldermen) have family members on the payroll," said Ald. Isaac Carothers, 29th, who has paid a relative more than $30,000 since January 2008. "That's nothing new."

  • Carothers refused to say if the William Carothers on his payroll was his father or brother, who have the same name. Carothers faces federal bribery charges, and his father, a former alderman, went to prison for public corruption.

  • City officials said the employees paid through the fund are contract workers because they do not receive a city pension or other city benefits.

  • But Shakman questioned that statement, because the city withholds the employees' taxes and sends each one a yearly W-2 tax form. "W-2s are a pretty good indication they are common-law employees," Shakman said.

  • On paper, the only oversight of the obscure payroll appears to come from the veteran chairman of the Council's Finance Committee, Ald. Edward Burke, 14th. According to the city budget, payments must be approved in writing by Burke.

  • Burke spent the largest chunk of the payroll -- $70,164 -- in 2008, according to city records. That total was higher than any other ward by more than $26,000.

  • Nevertheless, Daley and city attorneys said last week the city is in "substantial compliance" with the federal court consent decree. They plan to ask a judge early next year to end the court's supervision of city hiring.

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